Tobacco’s $315.3m boosts Malawi’s forex reserves

Malawi’s ever fragile forex reserves continue to enjoy buoyancy as they are being boosted by the ongoing tobacco sales proceedings.

The Tobacco Control Commission (TCC) says the leaf has so far earned the Malawi economy $315.3 million for the past 19 weeks since the marketing season.

According to the TCC week 19 which clocked July 19, 2013, was interesting because in terms of prices burley tobacco is now averaging $2 per kilogrammes, flue cured is at $3.13 per kilogrammes; Northern Dark Fired is at $2.15 and Southern Dark Fired closed at $2.07 per kilogramme.

“In volume terms, burley has sold 125.9 million kilogrammes; flue cured is at 18 million kilogrammes; Northern Dark Fired is at 2.9 million kilogrammes and Southern Dark Fired closed at 0.286 million kilogrammes. In value terms, as of week 19 the crop has injected US$315 million into the economy,” the TCC said.

Tobacco still remains Malawi main source of economic livelihood at micro level as well as an engine of growth at macro level

Market analysis company, Alliance Capital Limited said the proceeds for the season went over the $300 million mark that was projected for the season.

During the same time last year, tobacco sales had realised $167 million at an average of $2.21 per kilogramme.

In terms of volumes sold, it has improved by 95 percent compared to 2012 season since 147 million kilogrammes of tobacco s in 2013 against 75 million kilogrammes.